Buying Contaminated Property

At the end of December 2013, the EPA adopted ASTM E1527-13 (http://www.ttlassoc.com/key-changes-to-astm-e-1527-13) as the new Phase I environmental survey standard.  In addition to this standard, buyers should be aware of all requirements for ownership protection as well as the limitations of the protections.  CERCLA (U.S. Comprehensive Environmental Response, Compensation and Liability Act) currently supports the existing property owners can be liable for cleanup of contamination on or from their property regardless of source or fault, no exception for time period after contamination or ownership.  I can personally share a December 2013 closing on a Jacksonville property with neighboring properties having contamination.  As we proceeded with the environmental Phase I and Phase II, there were varying concerns over surround properties uses over 50 years ago.  Even though there were numerous properties in the area which sold on more than one occasion with no evidence of contamination and no recorded contamination at the EPA office of the concerned properties, there were concerned past uses which may have contaminated the subject property.  The subject property had a clean Phase I with areas of potential concern, but a Phase II was required.  The NE District Regulatory Florida EPA representative, advised me "contamination of an owned property from an off site source is not the liability of the property owner which was contaminated from the off site source".  The EPA representative would not offer this information in writing.  With that said, the article titled "Minimizing Landowner Liability When Buying Contaminated Property" in the April 2014 publication of  Real Estate Forum by Peter Duchesneau states to the contrary, the property owner can be responsible.  There are several factors in the newly adopted ASTM E1527-13 assessment standard which will influence the owners responsibility and liability.  If this sounds confusing or complicated, it can be.  When there is known contamination involved, engage a professional that is an expert in the area of environmental contamination and utilize their expertise and advice.  If properly utilized, it will pay great dividends. 
When your needs require a professional in purchasing, selling or leasing commercial real estate, contact Coldwell Banker Commercial Benchmark.